Actions of Strive for money (NYSE: EXK) fell about 17.5% in September, according to data from S&P Global Market Intelligence. This is a reversal of recent trends, which saw the stock rise by around 90% for the year at some point in July. But that doesn’t even do full justice to the stock’s performance this year, noting that it was down around 50% during the worst of the bear market in early 2020. Indeed, from its low point to its peak. high point, the title has increased by more than 200%.
The price of the gold and silver miner is largely determined by the prices of the raw materials it produces. This is normal for precious metal miners and should come as no surprise to anyone. So the volatile fluctuations in the price of Endeavor Silver so far in 2020 have followed the ups and downs of gold and silver. That said, as a miner, the results of the business tend to be influenced by fluctuations in commodity prices. So the huge movements in the stock.
What’s most remarkable here is that Endeavor Silver, as the name suggests, produces a fair amount of silver. About 50% of its turnover comes from this metal. Silver rebounded much stronger than gold after the bear market and, after peaking in July, fell about 20%. Gold, for reference, fell about 9% during that same period. Specifically, in September, silver fell by around 16%, while gold lost around 4%, using iShares Silver Trust and SPDR Gold Trust as agents. With a material silver footprint, it’s no surprise that Endeavor stock fell sharply in September.
Even after the recent drop in prices, Endeavor Silver shares are up significantly so far in 2020. Investors should remain cautious as precious metals can be very volatile, as September proved. Overall, investments in gold and silver are best viewed as diversification assets. But after such a big run this year, those looking for a safe haven investment should seriously consider cash as an alternative to buying Endeavor Silver shares.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.